{"id":236807,"date":"2010-01-27T11:59:00","date_gmt":"2010-01-27T16:59:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-7599207109201429100"},"modified":"2010-01-27T12:03:18","modified_gmt":"2010-01-27T17:03:18","slug":"wall-street-journal-warren-buffett-and-the-sp-what-it-means","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/236807","title":{"rendered":"WALL STREET JOURNAL: Warren Buffett and the S&P: What it Means"},"content":{"rendered":"

<\/a>By Matt Phillips

January 27, 2010, 7:56 AM ET<\/small><\/p>\n

Baby Berkshires are getting bid up in premarket trading, after Tuesday\u2019s announcement that the class B shares in Warren Buffett\u2019s iconic company will replace shares of Burlington Northern Santa Fe in the S&P 500 stock index. The Journal\u2019s Scott Patterson reports<\/a>:<\/p>\n

\n

Berkshire\u2019s addition to the index means fund managers who track it will need to rush to buy shares. Many index funds controlled by money managers, such as Vanguard Group, are benchmarked to holdings in the S&P 500, a broad gauge of corporate America. S&P estimates that more than $3.5 trillion in assets are held in investment funds, including index funds, tied to components of the S&P 500.<\/p>\n<\/blockquote>\n

Previously, Berkshire Hathaway shares had been excluded from the S&P 500 because their high prices cut down on how often they were traded. But that changed when shareholders approved a 50-1 stock split of its Class B shares last week as part of Berkshire\u2019s deal to buy railroad Burlington Northern Santa Fe Corp. last year, likely making the shares more liquid. Berkshire will replace Burlington Northern in the index, as well as in the S&P 100 index. As far as a hard date for the actual addition, that\u2019s yet to be announced.<\/p>\n


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